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CHANGES IN GROUP STRUCTURES

Forums › Ask CIMA Tutor Forums › Ask CIMA F2 Tutor Forums › CHANGES IN GROUP STRUCTURES

  • This topic has 0 replies, 1 voice, and was last updated 7 years ago by hanningtonsserwadda.
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  • June 26, 2017 at 10:24 am #394102
    hanningtonsserwadda
    Participant
    • Topics: 27
    • Replies: 20
    • ☆

    Hello,
    Thanks for the helping hand always.
    Now am going through changes in group structures.
    My question is:
    If a parent company acquires a 15% interest in another entity and it’s shown as a financial asset but on the reporting date the company acquires more shares to the extent that the entity now is a subsidiary. How can I arrive at the post acquisition profits if I only have the earnings of this entity in the statement of financial position.

    Can it be zero due to the fact that the parent entity obtained control at the reporting date.
    Thanks senior

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